What are the possible ways if TDSR is met but there is not enough cash for the downpayment

If you meet the TDSR (Total Debt Servicing Ratio) threshold of 55% or below but lack sufficient cash for the downpayment on a Singapore property, consider these practical options to proceed:

- Extend your loan tenure: Opt for a longer repayment period (up to 30 years for HDB flats or 35 years for private properties) to reduce monthly instalments, freeing up borrowing capacity within TDSR limits while minimising upfront cash needs. This lowers the loan amount you need to service monthly.

- Increase your downpayment portion via CPF Ordinary Account savings: Use CPF OA funds for as much of the downpayment as possible (subject to your available balance and LTV limits, e.g., up to 25% for second properties). This reduces the cash component required, as CPF covers non-cash portions effectively.

- Apply for a joint loan with a co-borrower: Partner with a family member or spouse whose income helps meet combined TDSR and boosts aggregate borrowing power, potentially allowing a higher loan quantum to cover more of the purchase price and ease cash shortfalls.

- Explore HDB-specific financing if buying resale flats: For HDB flats, leverage HDB loans (which have separate MSR rules at 30%) alongside CPF grants like Enhanced CPF Housing Grant (up to S$120,000 for eligible first-timers) or Proximity Housing Grant to offset downpayment cash needs.

- Refinance existing property loans strategically: If you own property, refinance owner-occupied loans (TDSR-exempt) to release equity for your new downpayment, or consider Mortgage Equity Withdrawal Loans (up to 50% LTV, TDSR-exempt) to access cash without violating debt ratios.

Check your eligibility on EdgeProp Singapore for property listings, loan calculators, and personalised TDSR simulations to model these scenarios accurately before approaching banks. Always confirm with financial institutions, as individual circumstances like income stability and LTV (e.g., 75-90% for first-time buyers) will influence approval.